– The Problem With The Forward EPS Hockeystick: Millions Of Americans Are About To Lose Their Jobs (ZeroHedge, March 2, 2015):
yes: the S&P may well be “fairly priced” here, if one assumes an 18x (rounded up) forward P/E multiple to be fair – a number which is above the prior 5-year average forward 12-month P/E ratio of 13.6, and above the prior 10-year average forward 12-month P/E ratio of 14.1. And in order to achieve that, not much has to happen: instead of hiring millions, America’s corporations just need to fire about 2-3 million people in order to extract the kinds of net margin efficiencies that are already priced in!
…